“…Indeed, ample anecdotal evidence suggests that managers often make costly attempts to rationalize their actions and influence the opinions or beliefs of shareholders, analysts, and investors through voluntary disclosures-via the media, letters to shareholders, advertisements, telemarketers' phone calls, or costly road shows. In particular, managers often justify actions relating to expansions, scale backs, changes in payout policy, and their firms' competitive strategies (e.g., Soter, Brigham, and Evanson [1996], Bergstein [2002], DeTienne and Hoopes [2004], Lang and Lundholm [2000]). 1 Such resource allocation implications of voluntary disclosure have received little attention in the literature, which, for the most part, has focused on the valuation implications of disclosure.…”